Pride Not Out For Revenge, Just Quick, Cheap Service

July 15, 1985|By Tom Stieghorst, Business Writer

When the first Pride Air flight leaves Palm Beach International Airport the morning of Aug. 1, it will culminate a four-year drive by hundreds of former Continental Airlines pilots to organize their own airline after losing a bitter takeover battle in 1981.

The acquisition, by Texas Air Corp., was the opening shot in a war between Continental employees and Texas Air Chairman Frank Lorenzo, who took the company into bankruptcy proceedings in 1983, voiding labor agreements in the process.

Two years later, former Continental pilots still march in protest at some airports.

The airline`s unique heritage has earned it the label ``Air Revenge`` among industry observers. But Pride Air Chairman Paul R. Eckel said the title doesn`t fit.

``This is not an air revenge,`` Eckel said in a recent interview. ``I would not have been willing to be a part of it if it had. We have one goal and one goal only -- that is to succeed,`` he said.

To do that, Eckel has decided to provide flights between Florida and the western U.S. through New Orleans. The airline has lined up eight Boeing 727 jets and initially will serve seven Florida cities, including Miami, Fort Lauderdale and West Palm Beach.

Destinations in the West include Las Vegas, Denver and Salt Lake City, as well as five California cities.

But Pride Air`s competition will be formidable. The list of airlines already flying its proposed routes includes American, United, Delta, Eastern and Continental, and the battle for traffic between Florida and New Orleans will be particularly heavy.

Pride officials insist they`ve done their homework. ``Literally thousands of hours of research was put into planning the Pride route structure,`` said airline spokesman Kiv Kiveranna. While acknowledging Pride will compete with ``everyone,`` Kiveranna points out that no single carrier is dominant in the western U.S. to Florida market.

Pride Air will advertise itself as the fastest and most convienient way to get between those points. New Orleans International Airport, its hub and headquarters, is about the size of the Fort Lauderdale/Hollywood airport, and officials say connections will be easier and delays fewer than at crowded hubs such as Houston, Dallas and Atlanta.

``At those large airports, a small airline like Pride doesn`t have a chance,`` notes John Ferguson, manager of the New Orleans airport.

Pride also will borrow a page from Continental in charging discount fares while providing full service and amenities. ``We`ll appeal to the businessman who is cost-conscious but wants full service,`` predicts Kiveranna. An official at one competitor said Pride ``just might make it`` if its fares are similar to Continental.

A comparison shows both carriers will charge $149 one-way between Fort Lauderdale and Los Angeles (with a 14-day advance purchase), compared to $210 on Delta Airlines. Eastern Airlines also charges $210, except for a $149 fare on a single flight routed through Miami.

Pride Air is backed up by $15.5 million of capital raised this year from an investor group that includes 360 ex-Continental pilots and two venture capitalists, Raymond M. Gray and Brian G. Marler, who together contributed $4.25 million.

The airline`s 520 employees own a majority of its stock, making it the first such company in the industry, Pride said.

Pilots at Pride will be paid about the same those at Continental, with captains earning $52,800, first officers $43,200 and second officers $33,600 annually.

Pride will be the first airline to add service to West Palm Beach in 1985. The airline will join People Express and New York Air as a newcomer in Fort Lauderdale.